The Saudi Arabian Oil Company (Saudi Aramco) announced Monday it reached an agreement for its subsidiary Aramco Overseas Company B.V. (AOC) to purchase a 17 percent stake in Hyundai Oilbank, a subsidiary of Hyundai Heavy Industries Holdings.
The investment is valued at $1.25 billion, Saudi Aramco said in a statement. The agreement also included an option for Saudi Aramco to acquire an additional 2.9 percent stake, Reuters reported.
The agreement supports Saudi Aramco’s crude oil placement strategy by providing a dedicated Arabian crude oil outlet to South Korea, the company said.
“Saudi Aramco continues to strengthen its position in the downstream sector,” Abdulaziz Al-Judaimi, senior vice president, said in a statement. “This acquisition demonstrates our investment in the highly complex refining sector in Asia and continuous commitment to the region’s energy security and development.”
Hyundai Oilbank is a private oil refining company founded in 1964. Its major facilities are located at the Daesen Complex, which is a fully integrated refining plant with a processing capacity of 650,000 barrels a day.
Saudi Aramco announced a 2018 profit of $111.1 billion, which made it the most profitable company in the world, The New York Times reported.
Saudi Aramco buying stake in Hyundai Oilbank
The investment by the world’s most profitable company is valued at $1.25 billion.
